Just a little ‘stream of consciousness’ report on my impression of earnings reports so far. That is, no links or cites.
There’s a pattern shaping up in earnings reports. Things you and I might buy, sales are down and profits falling. Up? Military and Armaments companies that sell to the government. Up hard over the last year, but now flattened and threatening a fall on profit not materializing to support the run up, medical and insurance companies wanting to cash in on Obamacare Monopolies…
GM – everyone excited as profits are up! On falling sales… (Oh Dear… )
Apple – Failed to have sales growth and profit growth as expected. Talk of “is it a commodity now”?
Chipole – MAJOR miss with 95% or so drop in profits (lots of give aways to get volume back up, but not working)
Retail in General – falling sales…
Arms Merchants – great profits on lots of sales (Saudi Deal anyone?…)
It’s an interesting pattern. “Friends of Government” and “Suppliers to Government” sales up. Tax payer buys, sales down. Hmmmm….
So just how long can that pattern continue?… I’d say to about January 20th or so.